Suburban D.C.’s Hotel Alexandria Turns Impressive Profit
- Jan 11, 2011
January 11, 2011
By Barbra Murray, Contributing Editor
Prices on hotel properties have not fully rebounded, but current conditions did not prevent Amstar from pocketing a nice profit on the sale of the Hilton Alexandria Mark Center in Alexandria, Va. In a joint venture with Davidson Hotel Co. in mid-2005, the real estate investment management company acquired the 496-room hotel for $93.2 million, renovated it to the tune of $9.3 million in 2006 and just sold it to Crow Holdings Realty Partners V L.P. for $121 million.
The 30-story property first opened its doors in 1985 at 5000 Seminary Road, less than eight miles southwest of Washington, D.C., and approximately five miles from Ronald Reagan Washington National Airport. Sited at the edge of a 43-acre botanical reserve within the the Mark Center mixed-use development, Hilton Alexandria features 55, 000 square feet of meeting space, which, along with the substantial supply of guestrooms, is positioned to be in great demand given impending changes in the area.
As a result of the federal government’s Base Realignment and Closure Act, announced in 2005, 6,400 employees will set up shop in the area when the U.S. Department of Defense establishes its Washington Headquarters Services at Mark Center, and a 1.4 million square-foot, two-building office complex will sprout up across the street to accommodate businesses relocating to due to BRAC.
Amstar’s disposition of Hilton Alexandria, which the company refinanced in 2007 when loans were plentiful, was very carefully timed. The company’s executive director, Adam Minnick, said that acquiring the property at attractive terms, improving the asset and streamlining operations were key elements of adding value.